Operating Leases

3 Months Ended

Sep. 30, 2021

Operating Leases

Note 7. Operating Leases

Note 7. Operating Leases

The Company has operating leases for corporate offices, warehouses and office equipment that have remaining lease terms of 1 year to 3 years,

The table below reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable operating leases with terms of more than one year to the total operating lease liabilities recognized in the condensed consolidated balance sheet as of September 30, 2021:

2022	118,528
2023	119,980
2024	100,336
Total undiscounted future minimum lease payments	338,844
Less: Imputed interest	(18,282	)
Present value of operating lease obligation	320,562

The Company’s weighted average remaining lease term and weighted average discount rate for operating leases as of September 30, 2021 are:

Weighted average remaining lease term	29 Months
Weighted average incremental borrowing rate		5.0	%

For the three months ended September 30, 2021, the components of lease expense, included in general and administrative expenses and interest expense in the condensed consolidated statements of operations income, are as follows:

Operating lease cost:
Operating lease cost	$	50,514
Amortization of ROU assets	$	46,561
Interest expense		3,781
Total lease cost	$	100,856

During August, 2021, the Company assumed a lease for office equipment that commenced on December, 2020 and recorded a right of use asset and corresponding lease liability. Lease expense was $240 for the three months ended September 30, 2021.